The S&P/ASX 200 Index (ASX: XJO) has enjoyed a pretty successful day of trading on the ASX boards today. The ASX 200 has finished up with a healthy 0.93% gain to 7,392 points. But one ASX 200 share put the broader index to shame. That would be the Orocobre Limited (ASX: ORE) share price.
Orocobre shares finished trading today at $9.70 each, up a pleasing 6.71% for the day. That's nearly 7 times the ASX 200's gains. But nothing shareholders in Orocobre wouldn't be used to by now. This is a company that's up roughly 116% year to date in 2021 alone, after all. It's also up more than 289% over just the past 12 months, and a jealousy-inducing 411% since the 15 May low in 2020.
So what could have sparked such a bullish push upwards today?
Orocobre share price shoots the lights out
Well, it's not entirely clear, unfortunately. There have been no major news or announcements out of Orocobre this Wednesday, or indeed since Wednesday last week.
However, we see a clear trend playing out on the ASX boards today that could provide some insight. Orocobre is one of the ASX's most prominent lithium companies. And it is also not the only company in the ASX lithium space enjoying some outsized gains today.
The ASX 200's biggest lithium play Pilbara Minerals Ltd (ASX: PLS) also enjoyed a robust day in the green today, up 5.43% to $2.33 a share. Its fellow lithium company Galan Lithium Ltd (ASX: GLN) is up 6.25% to $1.62 a share. Even the ETFS Battery Tech & Lithium ETF (ASX: ACDC) is seeing some gains.
So we can probably say with some confidence that we saw a sector-wide move here today.
But why?
My colleague James Mickleboro posited a possible explanation in the Fool's midday market update today: "Investors appear optimistic that clean energy investment will be given a major boost at the COP26 meeting this week." It's also worth pointing out that lithium shares like Orocobre are very hot right now, and have seen some wild swings in valuation over the past few months (and years) and sentiment shifts. Put another way, these large swings in lithium companies like Orocobre are not exactly uncommon.
Whatever the reason behind today's moves in Orocobre shares, there will no doubt be plenty of chuffed shareholders out there.
At the current Orocobre share price, this ASX 200 lithium company has a market capitalisation of $5.79 billion.
